The Chinese market has entered a period of increasing localization rate, and global semiconductors in 2018

The space prospect of semiconductor industry investment and equipment localization, the construction of wafer fabs in mainland China has reached a peak, and equipment localization is one of the keys to the rise of the industry. Between 2017 and 2020, there are 62 semiconductor fabs in production globally, of which 26 are located in China, accounting for 42% of the global total. China's local investment will become the main force for fab construction, under the escort of national policies and large funds.

Now the country has shown unprecedented support for the semiconductor industry. The release of the "National Integrated Circuit Industry Development Promotion Outline" has outlined clear goals for the development of the industry, and the establishment of the IC Industry Big Fund has provided much-needed development for the industry. financial support. We believe that the country's strong support and broad market space will effectively catalyze the construction of wafer fabs in mainland China.

At present, China’s large silicon wafers are heavily dependent on imports. At present, many Chinese companies are intensively starting silicon wafer projects. The bureau plans to deploy 8 inch and 12 inch silicon wafer enterprises to reach 11, and the scale of investment continues to rise. The localization of equipment is China’s undertaking of the semiconductor industry. One of the keys to transfer and realize the rise of industries. Semiconductor core equipment involves the competition of national basic science's comprehensive strength. It has the characteristics of high technical barriers, high value, and long R&D cycle. It is also the most difficult but crucial link in the semiconductor industry. Due to the complexity of semiconductor process flow and high dependence on equipment, equipment performance directly affects the product quality, process efficiency and yield of semiconductor manufacturing, and ultimately affects the profitability and global competitiveness of semiconductor companies. Therefore, China’s semiconductor industry has achieved independent development. With the rise of the control model, the completion of the localization of equipment links is one of the crucial links.

In 2018, the global equipment market may hit a record high, and the Chinese market has become a new engine for global growth. With the expansion of chip production capacity, the global semiconductor equipment market is on the rise. In 2018, it is expected to exceed the US$60 billion mark. The vigorous market demand for integrated circuits has driven the continuous upgrading of the industry and increased investment, which has strongly promoted the development of the integrated circuit equipment manufacturing industry. Therefore, the semiconductor equipment market is closely related to the prosperity of the integrated circuit industry. According to survey data, in 2017, the global semiconductor equipment sales reached a record high, reaching 56.6 billion US dollars/yoy+37%, and the compound growth rate from 2013 to 2017 was about 16%. According to survey data, the global semiconductor equipment market sales in 2018 are expected to reach 62.7 billion US dollars/yoy+11%. It will reach 67.6 billion U.S. dollars/yoy+8% in 2019, which is expected to hit new historical highs one after another.

Data source: compilation of public information

The global share of China's equipment market continues to increase. In 2018, it is expected to surpass Taiwan and become the world's second largest market. In 2019, it may rise to the world's first place. China is expected to rank first in the world with $17.3 billion for the first time. In the past ten years, the global share of the Chinese mainland market has generally shown a significant upward trend, from 6% in 2008 to 15% in 2017. According to data surveys, the global share of the Chinese market is expected to increase significantly to 19% in 2018 and 2019 , 26%.